Reserve Bank of India net-purchased $3.5 bn foreign currency in July

The Reserve Bank of India (RBI) bought a net $3.5 billion worth of foreign currency in July, according to the central bank’s monthly bulletin. The RBI purchased $5.3 billion and sold $1.8 billion of foreign currency in July.

The rupee depreciated by 0.3 per cent against the dollar in July. In June, the RBI had recorded a net purchase of $4.5 billion in the spot market. The RBI's net outstanding forward purchase by end-July stood at $19.47 billion, the same as the previous month.

In the current financial year, the rupee has depreciated by 1.3 per cent. It fell 7.8 per cent in the previous financial year (FY23). In the ongoing calendar year, the rupee has depreciated by 0.6 per cent. The local currency had appreciated by 0.16 per cent in the first six months of the calendar year.

Notably, as of December 30, 2022, India’s foreign exchange reserves amounted to $562.8 billion. These reserves notably expanded by approximately $33 billion over the first half of the year 2023.